I’m all in favor of the option for any school to go D1 if they choose, but to make that the only option seems ridiculous.
Personally, I’m an advocate of the Open Division model some states have adopted which use an RPI model to rank the top 8 or so teams from the states top divisions (say D1-D4 in Ohio), and place those schools in a separate playoff. Most years you’d get a bulk of the teams from D1 and 2, with perhaps a TCC or Glenville if their regular season SOS is good enough.
Absent an Open Division model, I think any school should have the option of moving up a maximum of 2 divisions from their present enrollment (or going all the way up to D1). My guess is very few, if any, schools would opt up to D1 (despite the current sentiment that D2 is “tougher”). But some may opt to bump a division or two.